THE IMPACT OF EXPO 2020 ON THE UAE REAL ESTATE MARKET

The arrival of Expo 2020 in the UAE

A lot has occurred since Dubai was selected as the host city for Expo 2020. The economy of previous host nations has benefited from the Expo in many ways. The most important factor is that the host countries' real estate industries have grown more aggressive.

Expo 2020 will be "the largest event ever staged in the Middle East, lasting 173 days and attracting millions of people from all over the world," according to the Saudi government. The original term, however, is still used for marketing reasons. promoting local and worldwide innovation, telecommunications, and sustainability via a variety of themed events."

As a consequence, the UAE will host a much-anticipated exhibition in October. During the Bureau International des Expositions (BIE) general session in Paris in 2013, Dubai was selected to host Expo 2020, the world's largest global event. Expo 2020 (Arabic: 2020) was initially planned from October 20, 2020, to April 10, 2021, with the theme "Connecting Minds, Creating the Future" and director Reem Al Hashimi. The new dates span from October 1, 2021, to March 31, 2022. It was postponed rather than cancelled because of the global COVID-19 pandemic. Despite the delay, the event organizers have decided to continue marketing it. The major Expo 2020 complex between Dubai and Abu Dhabi will be housed in a 438-hectare master plan developed by the American firm HOK.

In addition, Dubai has made significant real estate investments and intends to build the world's biggest solar energy project this year. Real estate, economic development, and public affairs investments will highlight the event's importance. In addition to monetary contributions, the country is concerned about global sustainability and climate change. As a result, the three sub-themes of the event are sustainability, opportunity, and mobility.

Experts analysis on real estate market

Expos have always had a significant effect on the host countries, and the Expo in Dubai this year is anticipated to be no exception. According to the organizers, the event will attract 20 million people globally and cost $1 billion in the United States. According to Ernst & Young, the Expo will create 49,700 full-time jobs and AED 122.6 billion in new income for Dubai this year.

In 2020, Dubai's property market will witness the most transactions as sales, and rental prices decrease dramatically. Despite a substantial rise in the secondary market, off-plan demand will have dropped significantly by 2020. Several projects have postponed the installation of new stages due to the decline. On the other hand, many developers anticipate a substantial rise in demand as a result of Expo 2020 and the 50th National Day in December 2021. S&P Global Ratings imposed restrictions on new developer launches throughout the year, even though transaction volumes remained high owing to low financing rates.

Employees in Dubai are returning to work quicker than those in other financial centres, according to an S&P Analysis study published on March 1, 2021. In the present scenario, office space leasing and sales have already decreased considerably, with significant corporations postponing the construction of new buildings and most professionals working from home. Increasing demand for warehouses and storage facilities has benefitted eCommerce and logistics companies, contrary to popular perception. Expats may quickly get a Dubai eTrade business license, according to the Dubai Department of Economic Development. Expo 2020 is anticipated to generate many employees in the hotel, architectural, service, and infrastructure development sectors.

According to data published by London-based Capital Economics, Dubai's GDP is expected to grow by 3.8 to 4.6 per cent over the next five years. Expo 2020 has undoubtedly helped Dubai's housing market, which has steadily increased in recent years. Because the UAE's regulations and infrastructure are comparable to any other major city, many investors are interested in establishing a business there. "Now is the perfect time to invest in this market," says Atif Rahman, Director of Danube Properties. "If a return rate of 10-12 per cent is more appealing, investors may opt to put their money elsewhere. The worldwide average is between 5% and 6%." Rather than buying and selling, as usual, this is the moment to invest."

Economic Impact on property market

According to the Dubai Land Department, 1,118 real estate sales for AED 4.7 billion occurred in August, with 5780 transactions worth AED 14.97 billion. In August of this year, property sales exceeded those of the preceding 12 years. In the past eight months, there have been 37,537 transactions worth AED 88.12 billion throughout the country. These real estate sales are up 22.61 per cent from the previous financial year when 35,401 transactions totaled AED 71.87 billion. In the AED. In Dubai's real estate industry, 2,599 off-plan sales deals totaling AED 4.95 billion were completed. For the first time in 11 years, off-plan sales have reached this level. In October 2009, off-plan home sales rose dramatically, with 3,181 transactions totaling AED10.02 billion.

The World Expo 2020 is expected to have a positive and far-reaching impact on Dubai's real estate market. The world's most renowned event is anticipated to attract 25 million visitors, with 70% coming from outside the nation. This number is expected to benefit both the rental housing market and the tourism industry. The re-establishment of ties between Qatar and four Arab countries and the stability of relations with Israel should boost tourist and property investment in the emirate of Dubai immediately.

New Visa Policy for Foreigners

The UAE government is facing many challenges as the Expo has become a powerful instrument for connecting people all around the globe. The government has created two new immigration policies, Silver and Golden, for investors, entrepreneurs, and outstanding students to address this problem. These rules are based on best practices from developed countries. The UAE's new visa policy allows visitors from all over the globe to live, study, and work in the nation without the need for a local sponsor. In addition, they will be able to own 100% of their business in the UAE as a whole. The government intends to issue valid visas for 5 and 10 years, respectively, to encourage people to establish businesses.

Many factors contribute to Dubai's real estate sector development, including more flexible payment options, more manageable loan repayment, and more precise visa criteria for investors. As a consequence of recent legislative reforms and the long-awaited Expo, investors are returning to the monarchy. According to Gulf News, 19 thousand foreign investors would spend about AED 35 billion in Dubai this year. India is the most active foreign investment, followed by China. The consortium now includes British, French, and Pakistani financiers.

EXPO 2020 After Effects

Finally, some views on the subject. Before, during, and after the Expo, Dubai's real estate industry is expected to witness a substantial increase in investment, as well as the emergence of high-end residential projects. To summarize, Dubai is well-positioned for growth. Expo 2020, which will be hosted there, will include a solar-powered concrete floor and the world's most sensitive radio telescope. At the same time, visitors will see some of the most cutting-edge architectural concepts in the world, including buildings that can produce energy, change shape, and transmit messages into space.

Qatar will host the FIFA World Cup in 2022, and Expo 2020 is anticipated to impact the tournament's preparations significantly. Both the UAE and Qatar are preparing for significant events, and the success of these events will benefit both countries' economies, especially in the hospitality and tourism industries. Dubai will certainly be one of the world's busiest economic centres in the coming months. The Expo's success will set the tone for the FIFA World Cup when tourists come, and economic activity increases.